CONFIDENTIAL
AM/AUG 2021/PAD370
UNIVERSITI TEKNOLOGI MARA
FINAL ASSESSMENT
COURSE
:
PUBLIC FINANCIAL ADMINISTRATION
COURSE CODE
:
PAD370
ASSESSMENT
:
AUGUST 2021
TIME
:
8.00 AM – 5.00 PM
DAY
:
1 DAY
INSTRUCTIONS TO CANDIDATES
1.
This question paper consists of two parts: Part A 1 question
Part B 2 questions
2.
Answer ALL question from Part A and any one (1) question from Part B. Start each answer
on a new page.
3.
Please check to make sure that this final assessment consists of :
i)
4.
the Question Paper
Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 4 printed pages
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
AM/AUG 2021/PAD370
PART A
QUESTION 1
Performance-based budgeting has been a popular reform among ministries of finance globally
to make national budgeting processes more aligned with medium-term strategic plans. It also
helps provide incentives to improve public service delivery. However, despite significant time
and effort devoted to implementation, the experience of many countries is rather mixed. In
Malaysia, the government has undertaken a more outcome-based approach to the annual
budget process, which represents an evolutionary step towards performance-based
budgeting.
Using outcome-based budgeting, Malaysia has helped successfully link high-level national
strategies to specific budget programs and activities using a common results framework to
define accountability. The outcome-based budgeting reform was instrumental in enabling the
government to re-orient budget preparation toward the achievement of clearly defined policy
outcomes. Part of the strategy included change management, staff training, and stakeholder
outreach (The World Bank, 2018).
Based on the statement:
a) Explain FOUR (4) objectives of using Outcome Based Budgeting System in preparing
the budget.
(20 marks)
b) Discuss the strategic process of implementing the Outcome Based Budgeting System.
(20 marks)
PART B
QUESTION 1
Accounting standards specify how transactions and other events are to be recognized,
measured, presented and disclosed in financial statements. The objective of such standards
is to provide financial information to investors, lenders, creditors, contributors and others that
is useful in making decisions about providing resources to the entity. In Malaysia, the
accounting standards are issued by Malaysian Accounting Standards Board (MASB). It is
established under Financial Reporting Act 1997 as an independent authority to develop and
issue accounting and financial reporting standards in Malaysia (L&Co. Chartered
Accountants, 2021).
By referring to the above statement:
a) Describe THREE (3) types of public accounting.
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
AM/AUG 2021/PAD370
(15 marks)
b) Discuss THREE (3) importance of accounting.
(15 marks)
QUESTION 2
The Malaysian Federalism is highly centralized in terms of revenue powers, expenditure
responsibilities and borrowing powers. Interpreting from the Federal-State fiscal relationship,
decentralization is a non-issue in the Malaysian Federalism context. The Federal Government
had a very strong commitment in the economic development and transformation of the States.
In fact, the Federal government is better positioned to manage social and economic agendas
with the good effect of scale economy. Federal-State fiscal relations have however been
affected by the problems of both vertical (Federal-State) and horizontal imbalances (StateState). This is however warranted by negotiations with the State in concerned by directing
Federal in setting up National Finance Council (NFC). The issue of fiscal decentralization in
the future is likely to be, at best, a series of ad hoc changes and improvements in technical
aspects of intergovernmental relationships for public service provisions and their finance
(Abdul Rahim Anuar, 2000).
Based on the statement:
a) Explain THREE (3) issues on Federal-state financial relations.
(15 marks)
b) Describe THREE (3) agendas discuss during the National Finance Council Meeting.
(15 marks)
END OF QUESTION PAPER
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL